Defining CSFs for Information Systems Strategic Planning in Holding Companies: A Case Study of an Iranian Managerial Holding Company (System Group)

Abstract

Holding companies (HCs) differ in their nature and behavior from other types of companies. Their role is to support, control and budget their subsidiaries. In general, HCs do not compete directly with one another, as it is difficult to find two HCs with the same product and service portfolios. Competition occurs instead at the subsidiary level against companies, which may or may not be part of other HCs, in overlapping markets with similar products and services. This concept of competition, which differs from that of typical commercial companies, is central to the development of HC strategies for supporting and controlling their subsidiaries. Information Systems Strategic Planning (ISSP) attempts to align information systems strategy with business strategy by directing the investment in information systems so as to satisfy strategic goals. Traditionally, ISSP methodologies have addressed the definition of information systems for Strategic Business Units (SBU). This research demonstrates, using a case study of an Iranian Managerial Holding Company, how ISSP can be applied instead to Strategic Business Processes (SBP). It illustrates how to define Critical Success Factors (CSFs) and Information System Needs (ISN) on Strategic Processes instead of Strategic Units. Moreover, this study combines the Balanced Scorecard (BSC) with a statistical questionnaire survey to define strategic processes.